Market structure refers to how price forms:
By observing these, traders can understand the direction and strength of the market.
An uptrend forms when:
This means buyers are in control.
A downtrend forms when:
This means sellers are dominating
A range occurs when:
This often happens during low volatility or market indecision.
Highs and lows act as decision points:
Trends continue as long as highs and lows are respected.
A structure break happens when:
This can signal:
Understanding market structure helps you:
Market structure is price itself, not a lagging indicator.
Many beginners rely only on indicators.
The best traders read structure first, then use indicators for confirmation.